Summary
Summary Corporate Finance Notes
- Module
- Corporate Finance
Comprehensive distinction level notes for BPP LPC Corporate Finance Module
[Show more]
1 review
By: aiswarya33 • 6 year ago
Content preview
Corporate Finance: Revision SummaryINDEX OF ABBREVIATIONS
- RIE – Recognised Investment Exchange
- IPO – Initial Public Offering
- PR – Prospectus Rules
- LR – Listing Rules
- DTR – Disclosure Guidance and Transparency Rules
- LP – Listing Principles
- PLP – Premium Listing Principles
- FSMA 2000 – Financial Services and Markets Act 2000
- RAO – Financial Services and Markets Act 2000 Regulated Activities Order 2001
- FPO – Financial Services and Markets Act 2000 Financial Promotions Order 2005
- MAR – Market Abuse Regulations
- CJA – Criminal Justice Act 2002
- FSA – Financial Services Act 2012
- UK CGC – UK Corporate Governance Code
- RCF – Revolving Credit Facility
- LSE – London Stock Exchange
- AIM – Alternative Investment Market
- FCA – Financial Conduct Authority
- MAC - Material Adverse Change
- EoD – Event of Default
CORPORATE FINANCE: KEY TERMS AND CONCEPTS
- Recognised Investment Exchange (RIE) – Investment exchange recognised by the FCA + exempt from general
prohibition in respect of regulated activities in s.19(1) FSMA 2000 – includes LSE Main Market and AIM.
- Regulated Market – Defined in FCA Handbook – includes Main Market of LSE but NOT AIM.
- Prescribed Market – Defined in FSMA Regulations + includes LSE Main Market and AIM.
- Quoted Company – Company whose equity securities are listed on the Official List.
- Traded Company – Company, any shares of which carry rights to vote at general meetings and are admitted to
trading on a regulated market in an EEA Member State.
- Primary Issue – First time that company makes offer of listed shares – also known as a ‘flotation’ or ‘initial public
offering’ (IPO).
- Secondary Issue – Subsequent issue of shares by a listed company.
- Companies Act 2006 s.755: Prohibition of Public Offers by Private Companies – Private companies prohibited
from offering shares to the public.
- s.756: Public Offer – Includes offers not intended to be limited solely to persons to whom the offer was directly
communicated.
- Public Companies – Generally larger companies capable of offering shares to public – private company can re-
register as a public company by following the procedure in s.90 Companies Act 2006.
- Listed Company – 3rd stage in development of a company where company’s shares are listed on the Official List and
admitted to trading on the Main Market of the LSE.
- Central Securities Depository (CSD) Regulation 2014 – Governs ‘central securities depositories’ in the EU –
aimed to harmonise the timing/conduct of securities transactions + requires all dealings in listed shares to be settled
electronically.
- ‘Central Securities Depositories’ – Institution which holds financial instruments and facilitates electronic transfer of
financial instruments.
- CREST – Computerised system which allows shares to be held/traded electronically between CREST members by
issue of instructions to CREST regarding the price/number of shares being transferred BUT only UK listed companies
or companies established in other jurisdictions which have adopted the CREST system can be traded using CREST – 4
ways in which investors may operate CREST accounts:
(a) Direct Users – Have direct connection to CREST – usually banks/stockbrokers who settle trades on CREST on
daily basis.
(b) Sponsored Members – No direct connection to CREST but appoint a direct user to communicate with CREST
on their behalf.
(c) Shares Held Through Nominee – Shareholder appoints a direct user to act as their nominee and hold shares on
behalf of the shareholder in a nominee account – nominee’s name appears on company’s register of members and
holds legal title to the shares BUT agrees to forward all communications/dividends/other payments received from
company to shareholder.
(d) Non-CREST Members – Shareholders who are NOT CREST members wishing to transfer shares into CREST
to sell them in course of a flotation must use a CREST Transfer Form.
ANALYSIS OF LISTING SECURITIES
1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller danhov. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £20.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now